Council to take action on Resolution No. 46-25 declaring, for purposes of Section 1.150-2 of the Federal Treasury Regulations, official intent to be reimbursed in connection with certain capital expen

4.T
CITY OF BUCKEYE
Regular Council Meeting
COUNCIL ACTION REPORT
MEETING DATE: 07/01/25
AGENDA ITEM: 4.T. FIN: Approve
Resolution 46-25 Declaring Official Intent
to Reimburse Certain Capital
Expenditures
DATE PREPARED: 07/01/25
DISTRICT NO.: All
STAFF LIAISON: William Kauppi, Chief Financial Officer,
wkauppi@buckeyeaz.gov, (623) 349-6161
DEPARTMENT: Financial Services
AGENDA ITEM TYPE: Consent Agenda
Items / New Business
ACTION/MOTION: (This language identifies the formal motion to be made by the Council) 
Council to take action on Resolution No. 46-25 declaring, for purposes of Section 1.150-2 of the Federal
Treasury Regulations, official intent to be reimbursed in connection with certain capital expenditures
relating to acquisition of water rights.
SUMMARY
PROJECT DESCRIPTION:
On August 1, 2023, Council adopted Resolution No. 79-23 authorizing the execution and delivery of not
to exceed $80,000,000 of the City’s Excise Tax Revenue Obligations (the “Obligations”) to provide funds
to finance the acquisition of the "Harquahala Water Project." The Harquahala Water Project consists of
the purchase of certain real property with groundwater rights allocated to such real property located in
the Harquahala Valley in Maricopa County, Arizona.
On May 20, 2025, the City used funds on hand to acquire the Harquahala Water Project.  It is expected
that the City will cause the Obligations to be sold in fiscal year 2025/26, and use the proceeds of such
financing to reimburse itself for expenditures made to acquire the Harquahala Water Project. 
Interest income on the Obligations will be exempt from Federal and State income taxes.  There are
several rules and regulations relating to tax-exempt finance, certain of which relate to the use of tax-
exempt borrowings to reimburse prior expenditures.  In order to reimburse itself from the proceeds of a
tax-exempt borrowing, the City must make an official declaration of intent to reimburse within 60 days of
the original expenditure.  Such declaration of intent must state the intent to reimburse with future
borrowing proceeds and it must be in writing.  Resolution 46-25 serves this purpose.
BENEFITS:
Adoption of Resolution 46-25 will satisfy the requirements of the Federal Treasury Regulations related to
reimbursement, thereby preserving the ability of the City to use the proceeds of the Obligations to
reimburse itself for the acquisition of the Harquahala Water Project.
FUTURE ACTION:
In fiscal year 2025/26, the City anticipates the sale and delivery of the Obligations.  Proceeds of the

Obligations will be used to reimburse the City for its expenditures relating to acquisition of the
Harquahala Water Project.
FINANCIAL IMPACT STATEMENT:
Proceeds of the Obligations will be used to reimburse the City for acquisition of the Harquahala Water
Project as described above.
BUDGETED:
Yes
FISCAL YEAR:
2025-2026
FUND/DEPARTMENT:
Finance
Items related to a project or facility location must include an attached vicinity map for Council
Review.
ATTACHMENTS:
Resolution 46-25 _Buckeye_ETO_2025_-_Reimbursement RJ- 6-23-25.docx